It's BAD, it's STILL very bad REPRISE thread (13 months on)
Discussion
ringram said:
WhoseGeneration said:
Does this therefore mean that, at all times, all Goverments could use increasing deficit spending?
They have to otherwise GDP will decrease. Look at government debt over time, it only goes one way, as does the value of the currency.But that doesn't stop the standard of living increasing over time.
The only caveat is the foreign sector. Surplus countries can accumulate wealth from others. However on a global basis this must sum to zero. So something has to give with trade deficit countries. With floating exchange rates this is usually the currency. But for Greece, it means default, devaluation etc.
Another genius idea from our friends across the pond - allow people in negative equity to refinance themselves into more debt in an attempt to kick the debt down the road and stimulate the retail sector through more mindless consumption - what could go possibly wrong (this time)?
http://www.reuters.com/article/2011/10/25/usa-hous...
http://www.reuters.com/article/2011/10/25/usa-hous...
Bing o said:
Another genius idea from our friends across the pond - allow people in negative equity to refinance themselves into more debt in an attempt to kick the debt down the road and stimulate the retail sector through more mindless consumption - what could go possibly wrong (this time)?
http://www.reuters.com/article/2011/10/25/usa-hous...
The plan was unveiled by Obama in Las Vegas. How apt!http://www.reuters.com/article/2011/10/25/usa-hous...
Investment company Alliance Trust reckon that from June and September we experienced the biggest quarterly fall on its Financial Reality index since it began reporting in 1997. In covering this, the Mail puts a figure on the £drop per family at £5,736 including pension pot shrinkage and house prices, while a DT report on the same story says recent Office of National Statistics reveal that households' disposable income grew by only 0.1pc last year, the worst year since the recession of 1982. Still, it could be worse.
BRIC countries have summits without Euro-American representatives present.
A hubris persists in the northern hemisphere that the super-productive creditor nations 'need us'. A bit like that old saying about owing a bank a pound is your problem, owing a bank a million is the bank's problem i.e. the BRICs - in particular China - need us because we owe them so much.
I thought this current HSBC ad prescient: "In the future South-South trade will be norm not novelty" The ad
The northern hemisphere has too little to trade. Sure, there are plenty of consumers up here but there are no means for the majority of those consumers to pay for their consumption. Which is a statement that would classically fit the third world: loads of people, but hardly any of them have any wealth or the means to generate any wealth. At the same time, our democracy is falling apart. We have, at best, barely elected imbeciles ruling our economies - again, not that different from the Third World.
A hubris persists in the northern hemisphere that the super-productive creditor nations 'need us'. A bit like that old saying about owing a bank a pound is your problem, owing a bank a million is the bank's problem i.e. the BRICs - in particular China - need us because we owe them so much.
I thought this current HSBC ad prescient: "In the future South-South trade will be norm not novelty" The ad
The northern hemisphere has too little to trade. Sure, there are plenty of consumers up here but there are no means for the majority of those consumers to pay for their consumption. Which is a statement that would classically fit the third world: loads of people, but hardly any of them have any wealth or the means to generate any wealth. At the same time, our democracy is falling apart. We have, at best, barely elected imbeciles ruling our economies - again, not that different from the Third World.
Britain's leaders are out of touch with the wealth creators who can save us
"Small business people - the everyday heroes who will restore Britain to economic health - need to be set free of unnecessary government regulations."
Spot on.
A look at reducing corporation tax and business rates wouldn't do any harm.
"Small business people - the everyday heroes who will restore Britain to economic health - need to be set free of unnecessary government regulations."
Spot on.
A look at reducing corporation tax and business rates wouldn't do any harm.
FT said:
Wang Qishan, the Chinese leader in charge of finance, has predicted the global economy will slump into long-term recession and warned that China will need to deepen financial reforms to cope with the fallout.
“Right now the global economic situation is extremely serious and in a time of uncertainty the only thing we can be certain of is that the world economic recession caused by the international crisis will last a long time,” state media reported Mr Wang as saying over the weekend.
http://www.ft.com/cms/s/0/e0b044a2-1382-11e1-81dd-00144feabdc0.html?ftcamp=rss#axzz1eHkajrkC“Right now the global economic situation is extremely serious and in a time of uncertainty the only thing we can be certain of is that the world economic recession caused by the international crisis will last a long time,” state media reported Mr Wang as saying over the weekend.
turbobloke said:
A heavily educated (above PhD level) and experienced colleague recently told me he was heading back home as "the prospects there are far better..."turbobloke said:
Britain's leaders are out of touch with the wealth creators who can save us
"Small business people - the everyday heroes who will restore Britain to economic health - need to be set free of unnecessary government regulations."
Spot on.
A look at reducing corporation tax and business rates wouldn't do any harm.
It needs to be this simple; A window cleaner or hairdresser - the smallest of the small businesses, a one man/woman band - wants to take on an employee. Can they recruit and fire if necessary (without ridiculous fear of tribunal) and can they work out both their employees tax and the business' tax without losing a day of productive labour or having to burn the midnoght oil? If not wny and what good does it do other than to keep armies of seat-shiners 'occupied' in HMRC?"Small business people - the everyday heroes who will restore Britain to economic health - need to be set free of unnecessary government regulations."
Spot on.
A look at reducing corporation tax and business rates wouldn't do any harm.
If it were this simple, not only would small businesses thrive and grow (and not be driven into the black market at the margins), but every single other business in the land would benefit from the same efficiency - labour could be diverted from HR and payrol to more productive employment.
If anyone has read "Boomerang" by Michael Lewis (very good read, by the way), the author talks in the introduction about Kyle Bass as being one of the people who foresaw the sub-prime mortgage crisis and the banking collapse that followed. His next thought was that the problem was not solved, it was merely moved up to governments who were not actually big enough to take on the problem. He started buying bearish positions on Greek debt.
Here is an interview of Kyle on the BBC.
http://www.bbc.co.uk/iplayer/episode/b01771pd/HARD...
Other than shouting at the rather stupid woman who seems only to be able to resort to [i]ad hominem[/b] attacks instead of grasping the nature of the topic, it is an interesting piece.
Quote of the day for me was Kyle's, "Don't hate the mirror because you're ugly."
Here is an interview of Kyle on the BBC.
http://www.bbc.co.uk/iplayer/episode/b01771pd/HARD...
Other than shouting at the rather stupid woman who seems only to be able to resort to [i]ad hominem[/b] attacks instead of grasping the nature of the topic, it is an interesting piece.
Quote of the day for me was Kyle's, "Don't hate the mirror because you're ugly."
And more still, for some holidaymakers and employees - Thomas Cook on the edge of collapse.
http://www.express.co.uk/posts/view/285418/Holiday...
http://www.express.co.uk/posts/view/285418/Holiday...
McDonalds quits Rochdale, it seems that this is some sort of barometer event.
http://www.dailymail.co.uk/news/article-2066591/Ro...
http://www.dailymail.co.uk/news/article-2066591/Ro...
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